Today technology has very much grown in last few years it has been in every aspect of medicine there is a huge development in medical imaging equipment as there are many equipment manufacturers, so a standard for storage and exchange of medical images needed to developed DICOM (Digital Imaging And Communication In Medicine) was created making it more easy and flexible in storage and exchange. DICOM image consist of two parts one is DICOM data and another is Image file we are implementing a security DICOM toolkit which will be able to handle, encrypt and Steganograph the purpose of this tool kit will be providing security for DICOM images and also reducing its size. The main benefit of this DICOM toolkit for avoiding false insurance claim avoid hackers to get the important information and secure exchange over a network. The idea of this paper is to separate the patient information from DICOM file and applying already existing encryption algorithm the encoded data is Steganograph to JPEG file format for secure transfer of image and data over network again the encoded data can be decoded performing reverse for it.